A report by Research and Markets has predicted a significant CAGR of 17.6% for the global plant-based food market through to 2027.
According to the report, dairy alternatives currently have the largest market share, which is unsurprising as they are purchased by many consumers who do not otherwise follow a plant-based diet. However, egg alternatives are expected to exhibit the highest CAGR, gaining popularity as they are cholesterol-free and suitable for those with egg allergies.
The Asia Pacific region is said to have the largest share of the plant-based food market, driven by innovative technologies, collaborations between domestic and international food companies, and government R&D. Significant growth is also expected for the North American market, particularly the US; this will be propelled by environmental concerns and the increased availability of plant-based foods.
Several trends are predicted to influence the market in the coming years. For example, AI and 3D printing technology will be used to improve the taste and texture of plant-based foods, while the rise of social media marketing will help plant-based companies reach a wider audience.
Consumers prioritze wellbeing
The report also analyzes the impact of the pandemic on the market, finding that while it initially disrupted supply chains, the long-term impact has been positive for plant-based foods. This is due to consumers increasingly prioritizing health and well-being.
These conclusions are also supported by other research; a recent PBFA report found that US plant-based food dollar sales increased by 6.6% to reach $8 billion in 2022, while animal-based and total food and beverage sales decreased by 3%. The report also predicted significant growth for the plant-based egg market, which saw a 14% boost in sales revenue last year.
“The findings of our report show that consumers want plant-based foods for every eating occasion,” said Linette Kwon, data analyst at PBFA. “From snacks to seafood to ready-to-drink beverages, consumers are exploring the variety of flavors and types available to them. We anticipate the expectation for plant-based options for all categories in retail/grocery to continue to grow through ongoing innovation.”